Post a new topic
    10 Replies Latest reply on Jun 8, 2009 1:43 AM by vistasad

    Student Starting an Online Retailer

    Joelmooers Newbie
      Hello everyone!

      I will be graduating soon from college and turning my seller account into a small business. The job market is terrible and I believe I can grow my 2,000-3,000 dollar part time job into much more. I filed for all my IRS, State licenses today. I figure I will need around 20,000-30,000 thousand dollars to buy and resell items online. The major purchase will be for a new car which gets better gas mileage then my mustang. I know that this business will be successful.

      Basically I am looking for some advice on the best way of getting a Small business loan to advance and grow the business. I have done some research about SBA(7) loans but still have no collateral. I am graduating with 28,000 in loans which hurts my credit score. No major problems in my past, no credit card problems, etc.

      Any advice would be very
        • Re: Student Starting an Online Retailer
          vistasad Adventurer
          You have provided sparse information. If you have been earning $2000 plus for some time you should be able to get a loan on the strength of that. You can always apply for a smaller loan.
          You will have to give a clearer picture. Lots of people have read your post but not commented on it.
          <!--Session data-->
          • Re: Student Starting an Online Retailer
            LUCKIEST Guide
            Student Starting an Online Retailer

            Welcome and good luck. To get a small business loan you need to develop a business plan.

            Who are you?? Go to Members page and share some info

              • Re: Student Starting an Online Retailer
                Joelmooers Newbie
                Thanks for the comments.

                I just registered for the site yesterday and now I have updated my user profile.

                Let see, from the comments I realize I need to imput more information. I guess the next important step would be to formulate a business plan. Luckily, being a Business Student I have already completed two business plans and know the process. Should I have this complete before I go to the bank requested loan information?

                Other information: I worked at a Thrift Shop for many years developing skills about pricing items. I have found Amazon to be a great website for selling mass produce items quickly and effectively. EBay is great for those more unique and rare items, such as electronics. I've been spending about 1,000 dollars a month on expenses, acquiring merchandise (from pawn shops, goodwill, value village, thrift shops,etc), gas, mailing, bubble wrap envelopes.

                In return, I've been getting amazon payments up to 3,000 a month and sold several larger items on I'd say I spend about 15 hours a week doing this and really enjoy the hunt and awesome payoff.

                What I am looking for: I am seeking around 20,000-30,000 dollars to start the business and run it for the next 6 months. Some costs I can think of include:
                Better fuel car: Perhaps a used Jetta TDI which ges upwards of 45 mpg. (8,000-9,000 thousand)
                Home mailing system, USPS has a new one for around 100 bucks with a 15 dollar a month fee. Would save time running to the post office and could schedule a home pickup.
                One time computer purchase, 1,000
                Personal wages probably 2,500 to 3,000 a month.
                Mailing fees
                Insurance, online fees, etc.
                The rest of the money would be used to buy items for resale. I would travel extensively hitting up one major city in a day and buying what I know I can resell for a profit.

                Typically my profits on items run from 50% to 200% of purchasing price. I have been very effective since I started selling items online in January.

                Again, my parents are willing to co-sign for the loan and have great credit. Is the amount of loan I am asking for realistic? How much would payments be? What sort of taxes am I looking at for making sales between 50-100k a year?

                Furthermore, what sort of insentives are there for small businesses, I remeber tha silly question mark dude on T.V. saying there was alot of government money for starting a small business, buying equipment etc. Is this even true? If so where can these types of small business opportunities be found?

                Joel Mooers
                  • Re: Student Starting an Online Retailer
                    RanksIntl Adventurer

                    Impressive venture that you have started on!

                    So, obviously you know the importance of a business plan when it comes to approaching potential lenders and investors but another important piece for someone looking to expand a business is record keeping. Whenever there is a need for something there is a way to get financing and based on what you have said you have clearly found a need and filled it. However, to get financing based on that you will need to be able to prove that you have made that money.

                    There a few different routes for anyone looking for investors: there is conventiinal lending through banks and commercial lenders, there is government grants and loans and then there is venture capitalists, angel, etc. The amount that you are asking for is by no means unattainable, it will just take a strong business plan with great record keeping to back up the return on investment or repayment of a loan. If you have a business plan I would love to take a look at it!


                      • Re: Student Starting an Online Retailer
                        Joelmooers Newbie
                        Thanks for the reply, when I get my business plan done I'll send you a copy.

                        I went into Bank of America yesterday and they could not help me with the start-up financing. Apparently they specialize in expansion loans for existing businesses (2+ years). Also, I learned that my parents cannot co-sign on a business line of credit, because it would be a mixing of personal and business finance.

                        My next option is to try for a SBA(7) loan and continue hunting looking for loans. I think I will look into smaller banks who might not immedaitely reject such a "risky" investmenet. Another option is to have my parents finance me through the equity in their house, aparently interest rates are at 4.5%, the lowest I've found.

                        I'll keep you all updated!
                  • Re: Student Starting an Online Retailer
                    king1987 Wayfarer
                    we are big supplier,we sell 100% original and new mobile phone,laptops,tv,camera,game console,gps and so on.we are honest and we do serious business.www(dot)mobilessupplier(dot)com is our website and email is summerstylish (at)yahoo(dot)com(dot)cn,we supply the excellent products with competitive price,we will deliver the goods you need within 24 hours after you have paid.then you can track your package online,within 3-4 business days you can get them.hope to service all the client ,you will satisfied with our products and our services,"Customers Foremost and Service First" are our top priorities
                    • Re: Student Starting an Online Retailer
                      phanio Pioneer
                      If you only need $20K to $30K - try peer-to-peer lending or micro-credit loans. Not as much emphasis on credit and time in business as traditional banks.

                      Business Money Today
                      • Re: Student Starting an Online Retailer
                        vistasad Adventurer
                        Besides the sources listed above I feel you can look at High Net Worth individuals. CPAs should be able to give you a lead to them. A CPA will also be able to provide you the necessary paperwork to undertake such a transaction.
                        If I were a banker I would look at your without too much favor because it is not scalable.
                        One area of sourcing you are missing out is from old houses being refurbished and from people passing away.
                        Builders and obituaries would tell you where to look.
                        If I had the money I would invest in your project.
                        Best for all. I am sure you will get the wherewithal from somewhere.
                        <!--Session data-->